Swenson v. Bender

764 N.W.2d 596, 2009 Minn. App. LEXIS 63, 2009 WL 1118899
CourtCourt of Appeals of Minnesota
DecidedApril 28, 2009
DocketA08-576
StatusPublished
Cited by10 cases

This text of 764 N.W.2d 596 (Swenson v. Bender) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swenson v. Bender, 764 N.W.2d 596, 2009 Minn. App. LEXIS 63, 2009 WL 1118899 (Mich. Ct. App. 2009).

Opinion

OPINION

ROSS, Judge.

This appeal concerns a Ph.D. candidate’s claim that her faculty dissertation advisor stole her ideas and falsely accused her of plagiarism. We must decide whether the advisor’s alleged theft and her reports that the candidate engaged in plagiarism support the candidate’s action against the ad-visor for breach of fiduciary duty. Former “online university” instructor Sharon Bender appeals a district court judgment requiring her to pay her former dissertation advisee Mary Swenson $60,000 in damages for breach of fiduciary duty. Bender asserts that the district court improperly considered the fiduciary-duty claim and challenges the conclusion that she breached a fiduciary duty to Swenson. Bender also contends that the district court erred by considering Swenson’s common-law conversion-of-intellectual-property claim, and she challenges the district court’s interlocutory award of attorney fees. Because we conclude that Bender neither owed nor breached a fiduciary duty and because the district court exceeded its discretion when it awarded attorney fees, we reverse.

FACTS

We are asked to address claims arising from counter-allegations of idea theft between a Capella University doctoral candidate and her academic advisor. Capella University offers academic degrees based on coursework completed by students on the Internet. Mary Swenson enrolled at Capella in January 2000 to obtain a Ph.D. in organizational psychology. Swenson followed Capella’s guidelines and chose four faculty members in the fall of 2001 to constitute a committee to evaluate her doctoral dissertation. Swenson’s chosen committee included a Capella faculty mentor to serve as chairperson, two faculty evaluators from Capella’s school of psychology, and one independent reviewer. Swenson chose Sharon Bender, an adjunct instructor at Capella, to serve as the independent reviewer, and she retained Bender in that role even when she otherwise completely changed the committee’s membership in January 2002.

The district court found and the record clearly establishes that Bender and Swen-son collaborated extensively in Swenson’s dissertation. Swenson testified that because she lacked a research background she depended on her dissertation committee for guidance. Ordinarily, the chairperson of the dissertation committee would fill that role, but in this case Swenson chose *599 Bender. Swenson and Bender conducted their relationship entirely over the internet and telephone. Electronic mail indicates that Bender offered her own dissertation to Swenson as “a model” and substantially edited Swenson’s draft dissertation.

Bender and Swenson mentioned entering into a business relationship in which the two would use the ideas they discussed, but the business relationship between the two never developed. No money, property, or other valuable interest changed hands, and Bender never obligated herself to act for Swenson’s benefit in an economic capacity or in any role other than advisor. The district court found that “to a great extent” Swenson had developed her dissertation ideas before working with Bender. But it also found that Swenson wanted Bender to co-author a book elaborating on the ideas they had discussed; that Bender offered her own material to Swenson to incorporate into her dissertation; that Swenson asked Bender to help depict the ideas graphically; that Swenson drafted an outline of a book that she intended to author with Bender; and that the two also discussed publishing a jointly authored article.

Swenson submitted her dissertation to the committee, which accepted it for review contingent on her making revisions to it. Swenson reformed her dissertation committee again in 2003, and this time she removed Bender. Despite removing her, Swenson continued to rely on Bender for advice and editing. But their continued collaboration eventually led to disagreements about how to attribute credit for abstract theoretical concepts that they had discussed. The district court found that Swenson created a sole proprietorship and intended to teach, write about, and market the theories. It found that Bender included what appeared to be modified forms of the same theories on her academic website for use by Capella students.

The disagreements culminated in conflicting accusations to Capella University. After the review committee failed her dissertation, Swenson complained to Capella that Bender “sabotaged” her efforts to obtain a degree and that Bender stole her “intellectual property.” Bender responded in kind, accusing Swenson of plagiarism in her dissertation.

Capella’s academic standards committee investigated the accusations. It rejected Swenson’s allegation of sabotage. Capella took no clear position on the competing claims of plagiarism, deeming the contest to be “better left to the legal process.” But it concluded that Bender acted unethically in her student-advisor role by developing a personal relationship with Swen-son, and it found it impossible to discern which parts of Swenson’s dissertation were her own work and which were Bender’s.

Swenson sued in district court, raising seven claims. She voluntarily dismissed all except a claim of conversion. Swenson immediately requested that the district court reinstate her claim of breach of fiduciary duty, and the court did so. Bender moved to modify the pretrial schedule. The district court denied Bender’s motion and also awarded attorney fees to Swenson for having to respond to it.

The district court conducted a bench trial on the surviving claims of conversion of intellectual property and breach of fiduciary duty. It concluded that Swenson failed to prove conversion, but it determined that Swenson and Bender were in a fiduciary relationship and found that Bender had breached her fiduciary duty. Bender appeals.

ISSUES

I. Does the record support the district court’s conclusion that Bender *600 breached a fiduciary duty arising from the advisor-student relationship?

II. Did the district court abuse its discretion by awarding attorney fees to Swenson?

III. Should this court disregard its pri- or determination of mootness and decide whether the district court erroneously recognized a common-law conversion-of-intellectual-property claim?

ANALYSIS

Bender challenges three of the district court’s decisions. The first regards its assessment of the fiduciary duty claim. The next concerns the district court’s decision to award Swenson attorney fees. And the remaining decision regards Swenson’s unsuccessful claim of conversion of intellectual property. Bender’s first two challenges have substantial merit, and we have already rejected the third in a special-term decision.

I

Bender argues that the district court should not have revived Swenson’s voluntarily dismissed claim of breach of fiduciary duty. She argues alternatively that the district court erred when it concluded that Bender owed a fiduciary duty to Swenson and that Bender breached that duty. Bender did not move for a new trial. When a party does not move for a new trial, on appeal we review only whether the evidence sustains the district court’s findings of fact and whether the findings sustain the conclusions of law and judgment. Rainforest Cafe, Inc. v. State of Wis. Inv. Bd.,

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764 N.W.2d 596, 2009 Minn. App. LEXIS 63, 2009 WL 1118899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swenson-v-bender-minnctapp-2009.